French Foreign Minister Laurent Fabius has given the first indication that the European Union may make changes to its new guidelines on funding Israeli organisations.

The advisory limits all financial co-operation between Israel and the EU to organisations that are not involved in any operations beyond the Green Line.

The guidelines, which were prepared at the request of EU foreign affairs chief Baroness Ashton, have caused a diplomatic row between Israel and the EU, although talks over a new research co-operation agreement are still ongoing.

Following meetings in Israel and with the Palestinian Authority, Mr Fabius said during a press conference in Jerusalem on Sunday that “my conclusion is that we have to look closer and see if there were things that were not intended, and make changes where changes need to be made without changing the overall approach”. The foreign minister would not, however, discuss any specific changes.

The Israeli government has refused to comply with the new guidelines, saying that it would not sign agreements with the EU stating that Israel has no sovereignty in East Jerusalem and the West Bank.